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Fleet Management

KLM Signs 21 E195-E2 Confirmation Orders



Embraer and the Netherlands KLM Cityhopper signed 21 E195-E2 confirmation orders and 14 purchase rights. The 21 confirmed order aircraft will be purchased and leased by Airbus Industrial Leasing business partner Aircastle and ICBC Leasing. At this year’s Paris Air Show, the agreement was announced in the form of 15 confirmation orders and 20 purchase rights letters of intent. If all purchase rights are converted to confirmation orders, the total value of the agreement will be $2.48 billion. It is confirmed that the 21 aircraft in the order will be leased from Aircastle and ICBC Leasing respectively, providing 11 and 10 E195-E2 aircraft to KLM.

Embraer & KLM at the 53rd International Paris Air Show

“KLM’s decision to add a further six aircraft to this order is a significant vote of confidence in our E2 programme”, said John Slattery, President and CEO, Embraer Commercial Aviation. “Delivering 30% lower emissions when compared to KLM’s current E190s, yet still providing a further 32 seats, the E195-E2 will simultaneously increase capacity for KLM at slot constrained Schiphol Airport, while also delivering huge reductions in emissions.”

John Slattery, President and CEO Embraer Commercial Aviation

“For KLM this aircraft is a significant part of our commitment to improving our environmental impact. Not only is the E195-E2 the most fuel efficient lowest emission aircraft in its class, it is also the quietest by a considerable margin – a huge benefit for both our communities and our passengers.

Pieter Elbers, President and CEO of KLM Royal Dutch Airlines

The economic and environmental performance of the aircraft makes the E195-E2 the ideal aircraft for growing KLM’s European business and supporting their hub-and-spoke operation, complementing the mainline fleet. This is why Embraer nicknamed the jet – The Profit Hunter. KLM Cityhopper started the process of replacing its fleet of venerable Fokker aircraft for E-Jets in 2008, in order to enhance the existing network and to permit the efficient development of new routes. KLM Cityhopper’s all Embraer fleet currently has 49 E-Jets, the largest E-Jet fleet in Europe – 32 E190s and 17 E175s.

KLM will use a 132-seat layout for the E195-E2 aircraft. Delivery will begin in the first quarter of 2021.

E195-E2 Prototype
E195-E2 Prototype

Embraer is the world leader in the manufacture of aircraft below 150 seats. At present, more than 100 customers worldwide operate the ERJ series and E-jet series aircraft of the Embraer industry.

Albert K. Field Albert is my name, and travel the world is my game. I began my passion for travel at a very young age, I started this website as a strong means to further explore the world of frequent flyers programs (FFP). The relationship between customers and service providers in the aviation and hospitality industry always seems to be in opposition, however, since the introduction of United Airlines’ Frequent Flyers Programm since 1972*. This has significantly eased the middle spectrum between 2 parties. While the aim of airlines is still to generate more revenue; but for us,as consumers, are also given the opportunity to participate in the bargaining and exploiting from service providers. Living in a world of globalization where big data becomes vital for simulating successful economical activities, most of us will have to travel to other locations whether willingly or unwillingly, while you hearing all this fascinating stories about others, In fact, you too, can blend into the trend. It may not sound like how media illustrates, but indeed there are possibilities for us to have more spontaneous travel without getting held back by financial situation. My website consists of reviews of airline premium cabin products,airport lounges and stay reports of 5-star hotels and their executive lounges across the globe. In addition to all of that, I care the most about their frequent flyers program and loyalty program, which also includes banking partners. Plus, I spontaneously put up reviews and news update regarding premium water brands and restaurants. The purpose of this website is to share all of this information with my audience as well as inviting you to be part of my journey.

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Fleet Management

Brussels Airlines To Reduce Fleet Size By 30% For Future Survival



Brussels Airlines Airbus A320
Brussels Airlines, as part of the Lufthansa Group, in a press release today has decided to take substantive and essential measures to ensure the company’s survival. Impacted heavily by the continuing development of COVID-19, the airline has been met with ongoing extremely low demand and worsened financials, forcing the carrier to structurally reduce its costs to a competitive level in order to grant a future for Brussels Airlines. With the airline’s turnaround plan, Brussels Airlines will be cutting marginally profitable and unprofitable routes in an effort to tack its cost structure. The plan would result in a fleet reduction of 30% and a 25% smaller workforce. The airline is confident in its ability to safeguard 75% of its employment and grow back to profitability when expected air travel demand bounced back to normal by 2023.

Brussels Airlines Airbus A319

The coronavirus crisis is exerting unprecedented pressure on airlines worldwide, and its total revenue impact is expected to exceed 240 billion euros. The number of bookings received fell by more than 60%, and the number of cancellations reached a record high. As a result, many airlines in Europe and elsewhere have had to lay off employees. Unfortunately, Brussels Airlines was not spared from this crisis. Since the temporary suspension of all flights on March 21st, the company lost 1 million euros a day due to loss of revenue and inevitable costs such as aircraft leasing and maintenance.

On February 28, the company first announced the impact on air travel demand. The situation deteriorated week by week and the number of days cancelled exceeded the number of bookings received. Today, demand is still very low. According to analysts and experts, the demand for air travel in 2021 is expected to be 25% lower than before the crisis, and the aviation industry can only expect to return to 2019 levels as early as 2023.

“We started the year 2020 with positive results in terms of number of passengers and revenues; and for this summer, we planned a strong leisure offer as we could compensate part of the business we lost due to the bankruptcy of Thomas Cook Belgium. But the Coronavirus pandemic is hitting Brussels Airlines extremely hard. We had no other choice than to temporarily suspend our flights as of March 21st and introduce technical unemployment for the entire company. This unprecedented crisis has worsened our financial situation obliging us to take substantial and indispensable measures. The restructuring is urgently needed in order to survive the current crisis and to become structurally competitive in the future”

Dieter Vranckx, CEO of Brussels Airlines

Brussels Airlines management plans to focus on achieving structural profitability after pulling the company out of the crisis, this will enable solid growth. The carrier plans to reduce its overall costs while increasing efficiency and productivity. Full positive EBIT margins will enable the airline to ensure its future, invest in the fleet and further develop its hub at Brussels Airport. In addition, Belgian domestic airlines will ensure that they continue to play a pivotal role in the Belgian economy and remain one of the core airlines within the Lufthansa Group.

The main measures of the turnaround plan includes:

  • The review of the network by focusing on the market needs and by optimizing the route profitability.
  • The adaptation of the fleet according to the network optimization: from 54 to 38 aircraft (-30%)
  • The reduction of the personnel costs by reducing the number of jobs by 25%
  • Together with the social partners, the number of forced redundancies will be reduced to a maximum extent.
  • The reduction of overhead, operational costs and the increase of operational efficiency, among others by improving productivity and further standardizing the fleet.
  • The simplification of the employee reward set-up, aiming at remaining an attractive employer while controlling the future cost evolution.

Brussels Airlines is aiming to do everything in its power to limit the number of forced dismissals. The company invites its social partners to jointly evaluate all alternative measures to minimize social impact; measures such as seasonal contracts, pensions, part-time work, unpaid leave, and volunteering to seek future volunteers elsewhere, these are just some listed options.

“The strength of our company are our employees and we do everything we can to protect our staff as much as possible. The way how we deal with the social impact is for us as important as the end goal itself. It’s the management’s responsibility to make sure that our company can survive the crisis. But let’s be clear, the intention is not only to survive but to build a healthy company with a long-term structural profitability and growth perspectives. We strongly believe in the plan and herewith in the future of Brussels Airlines.”

Dieter Vranckx, CEO of Brussels Airlines

Brussels Airlines Belgian Icons Liveries

Although a turnaround plan is indispensable to overcome the crisis, continued dialogues with the Belgian government and Lufthansa are still crucial. The Belgian airline hopes that talks with the Belgian authorities on the financial support needed to resolve the consequences of this unprecedented crisis will yield positive results, while it continues to seek assistance from Lufthansa on the restructuring costs.

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Fleet Management

Austrian Airlines To Retire 28 Aircraft, Keeping Future Fleet With 60



Austrian Airlines Dash8-Q-400
Austrian Airlines’ flight operations have been at a standstill since March 18, 2020, and they are not expecting demand to recover anytime soon. Austrian Airlines’ post-crisis plan would include capacity cut by phasing out 28 aircraft as an effort to downsize their fleet due to significantly dampened demand in the medium term.
Austrian Airline B777-200 OE-LPF
Austrian Airline B777-200 OE-LPF

Following the continuing evolvement of the Covid-19 pandemic crisis. it is not yet possible for Austrian Airlines to precisely forecast when the complete freedom to travel will be restored. This year Austria’s flag carrier predicts a 25 to 50% drop in demand. A maximum of 75% of the pre-coronavirus level is expected by the end of 2021.

Austrian Airlines Executive Board member Andreas Otto comments: “The entire airline industry is pessimistic. We have to assume that we will reach the ‘pre-corona level’ again in 2023 at the earliest.” 

Austrian Airlines is now preparing to realign its fleet to reflect the decrease in demand. The Executive Board came out with a statement yesterday of its “Plan for a New Start” suggesting a significant reduction to their fleet capacity.

Austrian Airlines B767 OE-LAW
Austrian Airlines B767 China OE-LAW

Austrian Airlines currently operates a fleet of 83 aircraft. They will continue to retire their originally planned 18 De Havilland Canada Dash-Q400 Turboprops following the decision made in 2019. In addition, all of their 7 A319s and 3 of the oldest B767s are to be retired by 2022. In total, they would be phasing out 28 aircraft out of their fleet while phasing in a number of old A320s to replace some of the capacity.

Austrian Airlines’ post-Covid-19 fleet plan envisages only around 60 aircraft in 2022, with only 9 long-haul aircraft. This approach is to take place in stages which in the ned corresponds to a capacity reduction of around 20%.

OE-LAEJan 2005Wiener Sängerknaben19.5 Years
OE-LATMar 2007StoredThailand28.6 Years
OE-LAWFeb 2005StoredChina27.7 Years
OE-LAXApr 2007StoredSalzburger Festspiele27.4 Years
OE-LAYJul 2005StoredJapan21.4 Years
OE-LAZApr 2005StoredIndia20.8 Years

Austrian Airlines B767-300 Fleet

The Boeing 767-300s aircraft to be retired are Thailand(OE-LAT), China(OE-LAW) and Salzburger Festspiele (OE-LAX), which are the oldest aircraft of the 6 of its type in their fleet with an average age of over 28 years. The other three B767s are between 19.5 and 21.4 years old. Austrian Airlines’ entire fleet age currently is at 15.4 years which is very old, They stated that their average fleet age will decrease to 14.6 after the plan is finished.

Austrian B767 OE_LAX
Austrian B767 Salzburger Festspiele OE-LAX

Despite the reduction of the fleet, as many jobs as possible are to be maintained. Appropriate talks are already underway with the works councils. We got into this crisis through no fault of our own. Now it is our responsibility to make Austrian Airlines fit for the future after Corona. We want to retain our long-haul hub, even if we have no other choice for the time being but to adapt to the somewhat smaller market. Being fit for the future also means that we must be in a position to finance our aircraft, charges, wages and investments, and of course also to repay any charges and loans from Corona grounding,” emphasises Austrian Airlines CEO Alexis von Hoensbroech. 

“We now have a plan, and hope for the support of everyone involved”, the Executive Board agrees unanimously. 

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